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You are an internal auditor for a corporation. The company reimburses employees when they travel for work purposes using their own vehicles. To receive this
You are an internal auditor for a corporation. The company reimburses employees when they travel for work purposes using their own vehicles. To receive this travel expense reimbursement, the employee submits paperwork that lists the addresses of their departure and arrival locations, the total mileage they traveled and the total mileage to be reimbursed. If the employee has traveled to multiple locations, the paperwork will indicate the legs they traveled for the trip. A trip leg is the distance traveled between two points. For example, if an employee leaves their home, travels to one business, then visits another business and then returns home, the trip has three legs: from their home to the first business, the first business to the second business and the second business back to their home.
Using this paperwork, an employee in the Payroll Department then calculates the reimbursement, calculated as miles traveled multiplied by the IRS reimbursement rate of $ per mile. Employees are expected to track the mileage traveled to the nearest tenth of a mile. The company pays the employee the computed reimbursement amount in their next paycheck.
The head of the Audit Committee recently reviewed the companys financial data and thought the amount of employee travel reimbursement might be excessive. She asked you to conduct an audit of the travel reimbursements to see if employees are following company policies.
In the past, when Internal Audit would audit travel reimbursement expenses, the internal auditor would take a sample of the trips made by employees. The internal auditor would then use a commercial mapping service Google Maps to measure the distance between the departure and arrival locations. The auditor would then look for patterns in the sample and make recommendations based on their findings. Because of the timeconsuming nature of gathering this data, the internal auditors were only able to look at a fraction of the nearly trip legs that were made by employees in a year.
Recently, however, the head of IntConduct your analyses by preparing visualizations in Tableau. Your analyses should answer each of the following questions and your report should address the following requirements. Make sure that you clearly explain your process and how you arrive at your conclusions.
How much money was spent on reimbursing employees for travel expenses? How much money do you estimate was spent for misreported reimbursements?
Hint: you may need to create additional calculated variables in Tableau; Three new variables are needed: reimbursement rate $ per mile; misreported mileageReported DistanceValidated Distance; misreported expense reimbursement rate x misreported mileage
How much money was spent reimbursing each office for travel expenses? How much money do you estimate was spent for misreported reimbursements for each office? What is your best estimate of the correct amount of travel expenses that should have been reported for each office?
Hint: Tableau: step : open one worksheet: Columnsdrag total expenses; misreported expenses; Rowsdrag Offices; Step : create another new worksheet; create a new variableshould be expenseReimbursement RateValidated Distance
How much money was reimbursed to each employee? How much of the money that was reimbursed do you estimate was caused by misreporting for each employee? Separate employees by office and then sort to show the employee with the greatest misreported amount at the top of each office section.
Hint: Tableau: open a new worksheet: Columns: drag total expenses & misreported expenses; Rows: drag Offices; Employee ID; Full nameit is a new variable:First name Last name
For each employee that misreported an amount greater than $ examine their misreporting behavior over time and provide a possible explanation for their behavior and any other evidence that might be relevant to their misreporting behavior. As a hint, although there is no time stamp in the file, the transaction Line ID is assigned so that larger numbers are assigned later in time.
Hint: Tableau: open a worksheet: Columns drag Line ID; Rowsdrag misreported mileage;
Next drag reported distance; misreported mileage; misreported expense; city; office; state; address into Tooltip
What else can you learn? Create at least one additional visualization that adds information relevant to your examination. Apply the analytics mindset AMPS framework to guide you: explicitly consider and discuss each step in the context of your investigation.
Prepare a report for the Audit Committee explaining your analytical procedures and findings. In your report, you should describe the objectives of the procedures, the analyses you performed, your findings, and your recommendations. Whenever possible, quantify your findings and recommendations and use visualizations to convey meaning. pLEASE HELP WITH EXACT STEPS AND HOW TO VISUALIZE IT ON TABLEAU INCLUDING THE FORMULAS
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